KOROR, Palau – Representatives from the U.S. Department of War, Republic of Palau, and the Palau Chamber of Commerce partnered to host a Construction Industry Forum at the Palau Community College in Koror, Jan. 19.
The forum centered on the multi-million dollar military construction (MILCON) project to modernize and enhance the Malakal port and harbor.
Attendees were provided with a project briefing, which outlined the scope of the improvements and the critical role the port will play in the region’s future, and were introduced to the Pacific Deterrence Initiative Multiple Award Construction Contract prime contractors to provide local businesses a view of the key players in the project. This was followed by a structured networking session, which enabled one-on-one discussions between prime and potential subcontractors.
“This event marks a significant step towards fostering robust economic growth and self-sufficiency for Palau by creating a powerful conduit between major PDI-MACC prime contractors and Palau’s vibrant local subcontractor community,” said Earl Estrella, Naval Facilities Engineering Systems Command Southwest Pacific Deterrence Initiative program manager. “The forum is strategically designed to be more than just a meeting; it is a marketplace of opportunity.”
This forum allowed local subcontractors within the region to network and share their knowledge and experience working in the Republic of Palau.
The forum enabled PDI-MACC contractors to connect with Palauan government representatives to gain insight into local, and national contracting regulations, and compliance parameters, which will facilitate bid preparation.”These projects will help Palau be more resilient, sustain long term resiliency, and gain resources for a better future,” said Gillian Miller, Coastal Navigation lead for the design team.
The Malakal Commercial Port is the main commercial port of Palau. The Malakal port itself will be increased to approximately 800 feet in length. The improvement projects assist with maintaining continuity across regional port operations and safe navigation from open ocean into port. The permanent, securable, joint Navy and Republic of Palau port facilities will also accommodate heavier mobile cranes, and install much needed storm water treatment.
Six prime contract companies carried the forum into the evening through shared information with representatives from the public. Public members spoke with the prime contractors to engage in potential business opportunities. The request for proposal (RFP) was issued Dec. 15, 2025, and is under review by the contractors. Proposals are due in February 2026, with a planned contract awarded later this year.
“The prime companies have gone through rigorous vetting to ensure they can meet required specifications,” said Estrella. “We are excited to have highly skilled representatives here today. These projects have the highest visibility at Indo-Pacific Command.Our objective is to open the door for communication and partnership.”
“All subsequent discussions regarding contractual terms, fees, scope of work, and other business arrangements will be conducted at the full discretion of the prime and subcontractors,” he continued. “This approach empowers the private sector to forge alliances, and build relationships on their own terms, ensuring that the resulting partnerships are both commercially viable and mutually beneficial.”
This forum is a great example of bringing business opportunities to the Palauan communities which provide mutual benefit with positive local economic impacts. A MILCON focused construction forum helps local businesses break down barriers and facilitate direct, meaningful connections which in turn ensures MILCON dollars generate lasting economic benefits for the local community rather than short-term, external gains.
“This forum represents a shared commitment to not only building a world-class harbor but also to building a stronger, more prosperous Palau,” said Capt. Elizabeth Ditoiu, Military Liaison to Palau. “By maximizing the inclusion of local talent and resources, we aim to ensure that the economic benefits of this historic project are felt throughout Palau, by its people, and for its people.”
Risk mitigation involves detailed analysis of construction in relation to environment impacts. The environmental Impact Statements are adetailed government document assessing a proposed project’s significant environmental effects, outlining potential harms, proposing alternatives, and identifying mitigation measures. EISs and the RFP run concurrently to include a period for public comment. Final approved statements then allow for permits before the contract is awarded.
Malakal Port was originally constructed in 1944 by the Government of Japan. Since then, the port has provided critical services supporting Palau as the main port of entry for goods, food items, and materials. In its current state, the port requires extensive repairs to the existing wharf surface, which has been subsiding due to decades of heavy loading associated with container storage and movements. Continued use of the port without intervention will further stress to the aging wharf structure.
MALAKAL PORT PROJECT: The Malakal Port project aims to expand the current footprint of the port by extending the northeast face of the wharf by 181 feet, which will provide approximately 112,000 square feet of additional container storage and operational space. The project will repair, strengthen and rehabilitate the existing wharf areas to accommodate increased container storage capacity. This includes demolition and replacement of an existing building, which is severely corroded and in a state of disrepair. Other aspects of the project include lighting for night operations and a modern storm water system that complies with Palau’s storm water design criteria to help prevent storm water from flowing into Malakal Harbor. The project will also remove debris that has accumulated over the years from the water at the wharf’s berthing area.
ICE BOX PARK LAND RECLAMATION PROJECT: Koror State has offered a solution to re-purpose the dredge material from the port improvement project to reclaim lands adjacent to Malakal Harbor. This land reclamation project will provide Koror State additional land space for a public park, which will benefit residents of Palau. The project is anticipated to create approximately 22,300 square meters (240,000 square feet) of additional space, which is roughly the size of two Asahi baseball fields.
The Compact of Free Association between the U.S. and the ROP designates defense responsibilities to the United States. A fully functional and up-to-date port is essential to military readiness because it enables the rapid deployment and sustainment of forces during crises or wartime. Modern ports can efficiently handle large vessels, heavy equipment, fuel, and critical supplies, allowing the military to move personnel and materiel quickly and at scale. This speed and throughput ensure forces can respond immediately and remain supported over time, which is fundamental to operational success.Updated ports also support allied interoperability, pre-positioned supplies, and surge capacity for humanitarian or disaster response. Together, these capabilities reduce logistical bottlenecks, increase flexibility, and act as a force multiplier that turns military readiness into sustained operational power.
